Air India is seeking about INR 100 bn (USD 1.14 bn) in financial support from its shareholders Tata Sons and Singapore Airlines (SIA) to bolster its engineering and operational capabilities following the June 2025 crash, Bloomberg reports. Tata Sons holds nearly 75%, while SIA owns about 25% of Air India. The proposed support may take the form of an equity infusion or no-interest loan, with discussions currently underway between the two shareholders.

Operational pressures: The request comes as the carrier — acquired by the Tata Group from the Indian government in 2022 — remains unprofitable and behind schedule on achieving operational break-even by FY 2025-26, according to The Hindu Businessline. Air India has faced route restrictions since Pakistan closed its airspace in May and supply-chain issues that reduced international operations by around 15% since mid-year. It also suffered a major reputational setback following the crash of its flight in June.

Singapore Airlines said it continues to work closely with Tata Sons to support Air India’s transformation program as a significant minority stakeholder, providing operational expertise and technical assistance where required. It reaffirmed its commitment to Air India’s post-merge integration and safety-improvement efforts following the Vistara-Air India merger in 2024, The Economic Times reports.

ICYMI: The capital request aligns with Air India’s broader turnaround and modernization drive under the Tata Group. The airline has been overhauling safety and engineering systems since the June 2025 Boeing 787 accident in Ahmedabad, in which over 240 people were killed. SIA has been assisting with operational and maintenance support since then. Following the crash, the airline suspended 83-wide body flights, which are gradually restoring operations following a technical audit.

Tags: